November 13, 2011

Doing the Math.

I received an email from a national chain of bridal shops. They want me to pay them to *feature* our bakery in their Birmingham store. We'd be the preferred baker for that location, which would entitle us to:

In person, in-store promotion to their brides. We could come (to Birmingham) as frequently as we like and set up a table. We can even bring samples (because you KNOW the newly engaged want to eat cake while trying on dresses).

A bi-weekly lead sheet containing key contact information for their bridal customers to include their name, address, telephone, email, wedding date, etc.

Have our marketing materials made available to their Bridal customers. Our information would be on the vendor display, in the registration bags that are given out to the brides as well as on a professional menu sign at the checkout. They will even create a professional shutterfly album of pictures of our cakes to have on display at all times.

There you go. Only $150 per month and we'd be their exclusive local baker in Birmingham.

But wait, before we even do the math... We're not in BIRMINGHAM. We're 50 miles away in Northport (and they HAVE a local store in Tuscaloosa, but they are not offering that location).

That little issue aside, let me walk you through my thinking.

My advertising budget is 2-5% of sales, which means the $150 investment would have to yield AT LEAST $3,000 in additional monthly wedding cake revenue.

That could be one or two large cakes, or several smaller ones. While the average wedding gown costs $1,075, according to Condé Nast Bridal Media, the average dress at this chain retails at $550. Some sell for just $99. So I'm thinking we won't be booking many $2000 cakes.

We'd likely need to book 4-8 weddings EACH MONTH.

That's 1-2 MORE weddings EVERY week.

Or DOUBLING the number of weddings we currently do.

We already have a big mixer, but we'd need another oven, two or three more FULL TIME cake decorators, another delivery vehicle, a walk-in fridge or freezer, and more space.

And we'd be like Publix or Wal-Mart, with very little personalization. Which is exactly what we are NOT. I love meeting with brides; sitting down and talking about what they want for their big day.

So do my decorators.

I'm the Mary behind Mary's Cakes and I oversee each and every wedding cake as it is baked, decorated and delivered. Afterall, it's MY name on the door.